Moody’s changes Fibertech view to developing

Moody's Investors Service said it changed Fibertech Holding Corp.'s outlook to developing from stable following Light Tower's (LTS Group Holdings LLC, B2 review for downgrade) announcement that it will acquire Fibertech in an all-cash transaction valued at $1.9 billion.

As part of the same action, the agency affirmed Fibertech's B2 corporate family rating, B2 probability of default rating and the B2 senior secured bank credit facility rating at Fibertech Networks, LLC, Fibertech's wholly owned subsidiary.

Moody’s said the developing outlook acknowledges the pending transaction, however, because it expects that all debt will be repaid at closing, the transaction does not adversely affect expected loss and all ratings were affirmed.

The agency expects to withdraw all of Fibertech's ratings concurrent with closing which, pending normal regulatory approvals, is expected in the third quarter of 2015.

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